The decline in Bitcoin (BTC) costs in August and record-high temperatures in lots of elements of the world have led publicly traded cryptocurrency miners to think about the previous month unsuccessful. One such firm is Marathon Digital Holdings (NASDAQ: MARA), which lately launched its unaudited operational updates for August 2023. The report reveals a 9% drop in Bitcoin manufacturing in comparison with the earlier month, primarily as a consequence of non permanent shutdowns of mining operations in red-hot Texas.
Marathon produced 1,072 Bitcoin in August, marking a 9% lower from July. In keeping with Fred Thiel, Marathon’s Chairman and CEO, the decline was primarily as a consequence of “elevated curtailment exercise in Texas as a consequence of report excessive temperatures.” These non permanent setbacks overshadowed the corporate’s efforts to spice up its operational hash fee.
Nonetheless, there’s a vital improve in crypto mining in comparison with final yr, partly because of the better quantity of accessible computing energy. In August 2022, the corporate’s common day by day manufacturing was 5.9 BTC, and it has since elevated by 477% to 34.3 BTC per day.
The corporate reported a 2% month-over-month improve in its US operational hash fee, now at 19.1 exahashes. This development is primarily attributed to changing older BITMAIN S19 J Professional miners with extra environment friendly S19 XPs mining rigs. Marathon can also be awaiting the completion of paperwork for its new facility in Backyard Metropolis, Texas, which is anticipated to reinforce its operational capabilities additional.
Supply: Marathon Digital Holdings
“Throughout August, we reached our major home development goal of 23 exahashes on an put in foundation, Thiel commented. “As we glance to our subsequent development goal, I’m happy to announce that now we have secured miners within the atypical course of enterprise for the following 5 exahashes of hash fee development.”
$MARA’s August #Bitcoin Manufacturing Replace is right here:
– Secured Miners for five EH/s Further Hash Charge
– Produced 1,072 BTC in August 2023 and seven,368 BTC 12 months-To-Date
– Mixed Unrestricted Money and Bitcoin Was $445 Million as of August 31, 2023Learn the complete report:…
— Marathon Digital Holdings (NASDAQ: MARA) (@MarathonDH) September 5, 2023
Marathon’s three way partnership in Abu Dhabi, initiated in July, produced 50 Bitcoin in August, of which roughly 10 Bitcoin is Marathon’s share. The operational hash fee for this enterprise has reached 1.5 exahashes, with plans to scale as much as 7.0 exahashes by the top of the yr.
As of 31 August 2023, Marathon holds a complete of 13,286 BTC, with 13,111 being unrestricted. The corporate ended the month with $111.2 million in money and money equivalents. The mixed steadiness of unrestricted money and Bitcoin elevated to $445.5 million, in comparison with $201.5 million throughout the identical interval final yr.
Sudden Market Downturn Prices Crypto Miners $2.8 Billion
5 main cryptocurrency mining corporations, together with Marathon Digital, skilled a collective lack of $2.8 billion following a current plunge in Bitcoin and the general crypto market. Knowledge from AltIndex reveals that the market capitalization of those publicly traded mining corporations shrank by 30% in a single month, plummeting from $9.5 billion to $6.7 billion. Concurrently, the month-to-month income generated from mining actions reached new lows.
Key business gamers like Riot Platform and Marathon Digital Holdings have been among the many hardest hit, with their market capitalizations declining by $1.1 billion (31%) and $800 million (25%), respectively. Different corporations like Canaan, Hut 8 Mining, and Cipher Mining Applied sciences additionally suffered vital market share losses.
Glassnode’s current information provides to the grim outlook, indicating that miners’ revenues have dipped to a month-to-month low of practically $170 million. This downturn echoes an analogous occasion in 2022 that slashed their complete income by $6 billion.
Regardless of the business’s poor well being, Marathon Digital’s inventory has surged by 250% this yr. Nonetheless, this upward pattern stopped in July at round $20, and since then, the inventory worth has declined by roughly 40% to about $12.
